THERE are a wide range of views as to what ‘money makes the world go round’ actually means. My favourite definition is that money is an energy form, a catalyst for making things happen.
That being said, the delivery of the renaissance region vision for north-east Scotland is, of course, heavily underpinned by cold, hard cash and the recent opening of the V&A Dundee is a cracking example of investment being the catalyst for much wider change in a regional economy.
It is the role of government at all levels to create the framework, conditions and impetus that will attract the investors, entrepreneurs and talented people that we need to deliver the environment that we all want to bequeath to future generations.
The City Region Deal announcement saw over half a billion pounds committed from UK, Scottish and local government, to key projects that will drive our regional economy. Since the announcement was made, a further £200m+ has been attracted from private sector investment and matched-funding from other sources and it is widely accepted that the Aberdeen deal is a beacon of best practice.
In 2016, having secured an Aa2 credit rating from Moody's, Aberdeen City Council issued a £370m investment bond, the first of its kind by a Scottish local authority. The fact that this was over-subscribed, at a time when the local economy was experiencing a period of uncertainty, demonstrated a real vote of confidence from investors in our future prospects. Today, the proceeds from the issue are being used to drive vital infrastructure developments throughout the city.
Alongside this, businesses continue to invest in their own people, premises, equipment and technologies to ensure this remains one of the most productive and competitive places in the UK.
In fact, over £1.7bn of projects have been completed in the north-east in the last 12 months; and this brings me back to energy. We are known as Europe’s energy capital but I’m talking about a different kind here.
Many people talk about people being at the heart of bringing city centres back to life. This is also true of regional economies. Yes, cash is key but only in the hands of the right people. People with vision, passion, strong relationships, that can work in partnership, want to get things done and won’t take ‘no’ for an answer.
Russell Borthwick is chief executive of Aberdeen & Grampian Chamber of Commerce.
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